Bhutan, known for its focus on Gross National Happiness, is set to leave the group of Least Developed Countries (LDCs) on December 13, becoming the seventh nation to do so since the United Nations established the category in 1971.

Other LDCs, including Bangladesh, Nepal, Angola, Laos, the Solomon Islands, and Sao Tome, hope to follow suit, but are concerned about losing trade privileges and access to cheap finance three years after graduation. Some, like Angola and the Solomons, have sought to delay their exit.

Bhutan's per capita income, which has risen to about $3,800 a year, is now 30% higher than that of its neighboring giant, India, thanks in part to booming hydro-electricity exports to regional power India. However, the COVID-19 pandemic and global inflation have led to increased spending, and the government

Graduating from LDC status brings credibility and "attracts investment from the world's biggest countries," said an analyst. To become a Middle-Income Country, a country must meet two out of three criteria: gross national income above $1,222 per year, and/or meet set standards for human welfare or economic vulnerability. UN committees then review cases for several years.


Also Read>>